Says Ted Doheny, Sealed Air president/CEO, “We continue to see increased demand for our innovative and sustainable solutions across fresh food and protective packaging, which is easing top-line pressure from a slowdown in global industrial demand and currency headwinds. By accelerating sustainable innovations and driving productivity and cost efficiency across the business, we remain on track to achieve our full-year 2019 earnings and free cash flow outlook. We are confident our strategy will continue to create value for SEE customers, shareholders and employees."
Food Care net sales of $730 million, as reported, were relatively unchanged versus prior year results. Currency fluctuations had a negative impact on Food Care net sales of 3%, or $20 million. On a constant dollar basis, net sales increased 3%, primarily driven by volume growth of 2% and sales from acquisitions of 1%. Organic volume increased across all regions. Overall, price had a negligible impact on Food Care sales. Adjusted EBITDA increased 10% to $160 million, with margin expansion of 190 basis points to 22%. Currency fluctuations had a $4 million unfavorable impact on Adjusted EBITDA. Adjusted EBITDA growth was driven by Reinvent SEE initiatives, including productivity improvements and restructuring savings, favorable price cost spread and higher volumes, partially offset by unfavorable currency and higher operating costs. Higher operating costs were primarily related to labor inflation, increased incentive compensation and non-material manufacturing costs.
Product Care net sales of $489 million increased 7% as reported. Currency fluctuations had a negative impact of 1%, or $5 million on Product Care net sales. On a constant dollar basis, net sales increased 8%, as a result of $56 million in sales contributions from acquisitions, primarily Automated Packaging Systems. Against continued macroeconomic headwinds, particularly in the industrial sector, organic volume declined 5% on relatively flat pricing trends. Adjusted EBITDA increased to $84 million, up 10% from $76 million. Adjusted EBITDA was negatively impacted by a $7 million non-cash inventory step-up charge associated with the Automated Packaging Systems acquisition. Adjusted EBITDA margin of 17% increased 60 basis points due to Reinvent SEE initiatives and favorable price cost spread, partially offset by lower volumes, the inventory step-up charge and higher operating costs. Higher operating costs were primarily related to labor inflation, increased incentive compensation and non-material manufacturing costs.